Which of the following groups contain only accounts that normally have credit balances?
A) Accounts Receivable and Fees Income
B) Salaries Expense and Accounts Payable
C) Fees Income and John Smith,Capital
D) Accounts Payable and Equipment

Question

Quizplus · Accepted Answer

Accounts that normally have credit balances include revenues, gains, liabilities, and owner's equity. Fees Income and John Smith, Capital are both equity accounts and thus have normal credit balances. Accounts Receivable and Equipment are both asset accounts, which normally have debit balances. Salaries Expense and Accounts Payable are both liability accounts, which normally have debit balances. Therefore, only choice C contains accounts that normally have credit balances.

Which of the Following Groups Contain Only Accounts That Normally